Bob wants to retire 10 years from now. He has saved $400,000 already and
plans to add to these savings in each of the next 10 years beginning with
$15,000 in year 1 and amounts in subsequent years that grow by 3% per year.
Bob wants to withdraw a fixed amount per year from his retirement savings
beginning in year 11. He expects to live for 25 years in retirement. Other
than a $200,000 inheritance for his children, he wants to exhaust his
retirement savings completely. How much can Bob withdraw each year from his
retirement savings? Show work. Assume that the annual interest rate is 7%.
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